Ryanair Holdings disclosed a Q3 net profit of €15M, marking a contrast from the prior year’s €211M, primarily due to escalated fuel costs offsetting revenue upsurges. Despite surpassing last year in traffic and fares, the close-in Christmas/New Year loads and yields lagged projections as Ryanair slashed prices in response to flights removed from OTA Pirate websites. The PAT for the nine-month period ending 31 Dec. 2023 soared by 39% to €2.19BN compared to the previous year’s €1.58BN.

Q3 Highlights:

– Traffic surged by 7% to 41.4M (load factor down by 1% to 92%).

– Revenue per passenger escalated by 9% (average fare up by 13% & ancillary revenue up by 2%).

– MSCI ESG rating elevated from ‘BBB’ to ‘A’ in December.

– Fuel expenses surged by €320M (+35%) to €1.2BN.

– 136x B737 “Gamechangers” among the total fleet of 574 aircraft as of 31 Dec.

– Fuel hedging extended to 65% of FY25 at $79bbl, saving €450M.

– Interim dividend of €0.175 per share announced (payable 28 Feb.).

Q3 FY24 Business Review:

Q3 scheduled revenues climbed by 21% to €1.75BN. Traffic grew by 7% to 41.4M while average fares rose by 13% to over €42. Ancillary revenue witnessed a 10% hike to €0.95BN (approximately €23 per passenger). Total Q3 revenue rose by 17% to €2.7BN. Operating costs surged by 26% to €2.7BN, mainly attributed to a 35% increase in fuel costs and higher staff expenses.

Outlook:

Ryanair targets approximately 183.5M FY24 traffic (+9%), despite minor setbacks in Q3 load factors and Boeing delivery delays. The FY24 PAT guidance is narrowed to a range of between €1.85BN to €1.95BN. The full-year result hinges on avoiding unforeseen adverse events in Q4.

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